A Chief Financial Officer (CFO) has many responsibilities that help manage their company’s financial picture and avoid risks. CFOs also provide trusted guidance on strategic decisions that can impact a company’s long-term economic health.
In order to do their jobs effectively, these financial leaders must have accurate information at their fingertips when needed, especially from their accounts payable (AP) department. However, AP departments that rely on manual, paper-based processes struggle to provide precise, real-time information that gives the CFO an accurate snapshot of the organization’s financial picture. The result can be poor decision-making that can impact a company’s bottom line for months or even years.
The good news is that CFOs can leverage advanced automated AP technology to help protect their company’s financial health and build sustainable profits while streamlining the AP process, whether Large Enterprise or SMB.
The CFO’s workflow before AP automation
Much of the CFO’s workflow before AP automation involved managing the invoice approval and payment processes. If an invoice had a problem at any point during the process, a labour-intensive investigation was required to correct any errors.
Also, paper-based systems are prone to human error. Inaccurate keying into the system, invoices becoming lost or misdirected in the approval chain, and invoices sitting unapproved on someone’s desk while they are away are all issues that can damage a company’s cash flow.
If the CFO required the status of a current invoice, they had to hunt for the paper, delaying the real-time information they needed. Additionally, paper-based AP workflows often resulted in higher operational costs due to errors, delays, and the need for more staff to manage the workflow.
CFOs also need to maintain excellent relationships with the company’s suppliers. Delayed supplier payments due to slow invoice processing can damage those hard-earned relationships and potentially cost the company more money in late payment fees.
On top of all this, if a CFO has trouble controlling spending in their AP department due to outdated invoice practices, confident decision-making is next to impossible.
AP automated technology can help the CFO in virtually every aspect of their AP processes, making their job easier with features that transform their financial team’s day-to-day operations while offering many significant cost-effective advantages.
How AP automation improves financial control
Without proper financial control, a business can quickly lose money. AP automation technology can stop unnecessary losses and help secure the company’s long-term economic health, which is every CFO’s goal.
Automated AP systems store invoice data and document images securely in the cloud, giving CFOs real-time visibility into invoices and payments. This feature supports better cash flow forecasting and optimization, including improving the ability to take advantage of suppliers’ early payment incentives.
Fraud is a major concern of CFOs. AP automation helps prevent fraud by standardizing the AP process to ensure each invoice complies with preset guidelines. Invoices are scanned into the software, which uses Optical Character Recognition (OCR) technology to ensure accurate data capture, eliminating the risk of human data entry errors. After the invoice is securely stored, the software performs automated checks on the data entered, helping CFOs avoid duplicate invoice entries or other issues that trigger time-consuming audits that can delay payments.
Digitizing invoices also removes the risks of losing or misdirecting paper invoices. When an invoice is ready to be reviewed, approval alerts are sent to stakeholders in the approval chain. This speeds up approval time from days or weeks with paper to under a minute in most cases, ensuring that payments are made on time and helping the AP department avoid late payment fees. Plus, suppliers who are paid early may also be more open to offering the CFO better credit terms, further improving cash flow.
Why are more CFOs moving to AP automation?
AP automation is becoming more commonplace in business operations as more CFOs discover the many tangible, cost-effective benefits the system brings, such as:
- When the company starts receiving a high volume of invoices due to seasonality or growth, AP automation solutions can quickly scale to handle the surge
- Streamlined digitized systems free up the CFO’s and AP department’s time for less repetitive, higher-value tasks
- Operational costs are significantly lowered by eliminating AP process inefficiencies, creating additional sustainable profits
- Financial reporting is more accurate using real-time data available at the CFO’s fingertips
- AP automation can merge multi-location AP systems for precise financial snapshots of the entire organization
When you’re ready to explore all the advantages of transforming your AP department to an automated system, talk to the experts at Ash Conversions International (ACI). We’ve helped CFOs from every size business to help streamline their operations and make their day-to-day duties easier with an effective solution customized to their needs.
Book a consultation to discover the benefits of an automated accounts payable solution from Ash Conversions International
For over 40 years, ACI has specialized in transforming how company leaders, including CFOs, manage their daily business processes. We offer efficient, cost-effective accounts payable solutions that streamline processes, improve efficiencies, and boost profits.
Our tech-based systems can be completely customized to meet your unique requirements, integrate seamlessly with your existing tech infrastructure, and are supported by our team of experts during and after implementation.
For more information on how your company can benefit from a digital AP processing system, call us at 1-800-719-9621 or click the button below.
